A new AARP study showing retail prescription prices haveincreased six times faster than the general inflation rate since2006 underscores the possibility that the Government AccountabilityOffice may be seriously underestimating how muchhealth care is costing retirees.

The AARP study also found that the average annual cost oftherapy for one prescription drug totals more than $11,000, whichequals a whopping 75 percent of the average annual social securitybenefit.

A commentary from retirement health care cost modeling providerHealthView said that, in addition to underestimating how muchretirees pay for health care premiums, the GAO study failed to takeinto account health care inflation — and the AARP study certainlyappears to back that up.

Among other AARP findings were numerous other disturbing facts,which were based on the retail prices of 227 brand name, 115specialty, and 280 generic prescription drugs in2013.

The average annual increase in retail prices for widely-usedprescription drugs was 9.4 percent, compared with a generalinflation rate of 1.5 percent. The average annual cost for therapywith that hugely expensive prescription drug mentioned above camein at an alarming $11,341. Not only would this account forthree-quarters of an average annual social security benefit, italso amounted to nearly half of the median income for Medicarebeneficiaries ($23,500), and more than one-fifth of the median UShousehold income ($52,250) over the same time period.

Brand-name drugs increased, on average, by 12.9 percent.Specialty drugs weren’t much better, rising by an average of 10.6percent annually, while generic drugs — supposed to save everyonemoney — still increased an average of 4 percent per year.

“Unfortunately, it’s becoming clear that we can no longer relyon decreases in generic drug prices to offset unrelenting priceincreases for brand name and specialty drugs,” Leigh Purvis, MPA, AARP PPI director of healthservices research and coauthor of the new report, said in astatement. Purvis added, “This shift has serious implications forolder adults and the entire health care system.”